Section 27-36A-1 – Short Title.
Section 27-36A-1 Short title. This chapter shall be known as the Standard Valuation Law. (Act 2016-411, §2.)
Section 27-36A-10 – Minimum Reserves.
Section 27-36A-10 Minimum reserves. (a) In no event shall a company’s aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after January 1, 1972, be less than the aggregate reserves calculated in accordance with the methods set forth in Sections 27-36A-8, 27-36A-9, 27-36A-12, and 27-36A-13 and the mortality […]
Section 27-36A-11 – Optional Reserve Calculation.
Section 27-36A-11 Optional reserve calculation. (a) Reserves for policies and contracts issued prior to January 1, 1972, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all policies and contracts than the minimum reserves required by the laws in effect immediately prior to that date. […]
Section 27-36A-12 – Reserve Calculation – Valuation Net Premium Exceeding the Gross Premium Charged.
Section 27-36A-12 Reserve calculation – Valuation net premium exceeding the gross premium charged. (a) If in any contract year the gross premium charged by a company on a policy or contract issued on or after January 1, 1972, is less than the valuation net premium for the policy or contract calculated by the method used […]
Section 27-36A-13 – Reserve Calculation – Indeterminate Premium Plans.
Section 27-36A-13 Reserve calculation – Indeterminate premium plans. In the case of any plan of life insurance which provides for future premium determination, the amounts of which are to be determined by the company based on then estimates of future experience, or in the case of any plan of life insurance or annuity which is […]
Section 27-36A-14 – Minimum Standard for Accident and Health Insurance Contracts.
Section 27-36A-14 Minimum standard for accident and health insurance contracts. (a) For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (b) of Section 27-36A-3. (b) For disability, accident and sickness, and […]
Section 27-36A-15 – Valuation Manual for Policies Issued on or After the Operative Date of the Valuation Manual.
Section 27-36A-15 Valuation manual for policies issued on or after the operative date of the valuation manual. (a) For policies issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under subsection (b) of Section 27-36A-3, except as provided under […]
Section 27-36A-16 – Requirements of a Principle-Based Valuation.
Section 27-36A-16 Requirements of a principle-based valuation. (a) A company must establish reserves using a principle-based valuation that meets the following conditions for policies or contracts as specified in the valuation manual: (1) Quantify the benefits and guarantees, and the funding, associated with the contracts and their risks at a level of conservatism that reflects […]
Section 27-36A-17 – Experience Reporting for Policies in Force on or After the Operative Date of the Valuation Manual.
Section 27-36A-17 Experience reporting for policies in force on or after the operative date of the valuation manual. A company shall submit mortality, morbidity, policyholder behavior, or expense experience and other data as prescribed in the valuation manual. (Act 2016-411, §2.)
Section 27-36A-18 – Confidentiality.
Section 27-36A-18 Confidentiality. (a) For purposes of this section, “confidential information” shall mean all of the following: (1) A memorandum in support of an opinion submitted under Section 27-36A-4 and any other documents, materials, and other information, including, but not limited to, all working papers, and copies thereof, created, produced, or obtained by or disclosed […]
Section 27-36A-19 – Single State Exemption.
Section 27-36A-19 Single state exemption. (a) The commissioner may exempt specific product forms or product lines of a domestic company that is licensed and doing business only in the State of Alabama from the requirements of Section 27-36A-15 provided: (1) The commissioner has issued an exemption in writing to the company and has not subsequently […]
Section 27-36A-2 – Definitions.
Section 27-36A-2 Definitions. For purposes of this chapter, the following definitions shall apply on or after the operative date of the valuation manual as defined by Section 27-36A-15: (1) ACCIDENT AND HEALTH INSURANCE. Contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be […]
Section 27-36A-20 – Small Company Alternative Valuation.
Section 27-36A-20 Small company alternative valuation. THIS SECTION WAS AMENDED BY ACT 2022-151 IN THE 2022 REGULAR SESSION, EFFECTIVE MARCH 17, 2022. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. (a) A company calculating reserves under this section shall calculate reserves for life insurance, accident and health insurance contracts, credit life contracts, group life contracts, […]
Section 27-36A-3 – Reserve Valuation.
Section 27-36A-3 Reserve valuation. (a) Policies and contracts issued prior to the operative date of the valuation manual. (1) The commissioner shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in […]
Section 27-36A-4 – Actuarial Opinion of Reserves.
Section 27-36A-4 Actuarial opinion of reserves. (a) Actuarial opinion prior to the operative date of the valuation manual as defined by Section 27-36A-15. (1) GENERAL. Every life insurance company doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support […]
Section 27-36A-5 – Computation of Minimum Standard.
Section 27-36A-5 Computation of minimum standard. (a) Except as provided in Sections 27-36A-6, 27-36A-7 and 27-36A-14, the minimum standard for the valuation of all the policies and contracts issued prior to May 28, 1996, shall be that provided by the laws in effect immediately prior to May 28, 1996. (b) Except as otherwise provided in […]
Section 27-36A-6 – Computation of Minimum Standard for Annuities.
Section 27-36A-6 Computation of minimum standard for annuities. (a) Except as provided in Section 27-36A-7, the minimum standard of valuation for individual and group annuity and pure endowment contracts issued on or after May 28, 1996, shall be the commissioners reserve valuation methods defined in Sections 27-36A-8 and 27-36A-9 and the following tables and interest […]
Section 27-36A-7 – Computation of Minimum Standard by Calendar Year of Issue.
Section 27-36A-7 Computation of minimum standard by calendar year of issue. (a) The interest rates used in determining the minimum standard for the valuation of the following shall be the calendar year statutory valuation interest rates as defined in this section: (1) Life insurance policies issued in a particular calendar year, on or after the […]
Section 27-36A-8 – Reserve Valuation Method – Life Insurance and Endowment Benefits.
Section 27-36A-8 Reserve valuation method – Life insurance and endowment benefits. (a) Except as otherwise provided in Sections 27-36A-9, 27-36A-12, and 27-36A-14, reserves according to the commissioners reserve valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance and requiring the payment of uniform premiums, shall be […]
Section 27-36A-9 – Reserve Valuation Method – Annuity and Pure Endowment Benefits.
Section 27-36A-9 Reserve valuation method – Annuity and pure endowment benefits. (a) This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, including a partnership or sole proprietorship, or by […]